Rural India and ICT Initiatives

7/31/2019 Rural India and ICT Initiatives

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Enabling Rural India with

ICT Initiatives

Ashok Jhunjhunwala, Sujatha N, Anuradha R.

TeNeT Group, IIT Madras, India


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India

! 1.1B people! 18 official languages

!

200M households! 72% in rural areas

GDP : $ 527 B in 2003

! Per capita $2670 (PPP)

! PPP factor: 4.5

! Doubled over last decade

10

86

44

1210 9

21

0

10

20

30

40

50

60

70

80

90

100

600

0

Income range (US$ per year)

No.

ofhouseholds(in

millions) 73% of households

income is less than this

$60 per month(real income)


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14.54

17.80

39.18

41.62

42.84

21.63

32.97

26.79

14.00

19.00

24.00

29.00

34.00

39.00

44.00

49.00

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005

Mobile drives Indias Telecom Growth

Still addressing top 25% ofhouseholds

! Tele-density crosses 7 per 100

! India today adds 2 to 2.5M mobiles

per month! Only because Infrastructure CAPEX

< $ 60 per line

! and with handset price of $ 50 to $ 250

! Tariff down to 2 cents / min

! ARPU of $ 7 per month

10.48

13.00

33.70

5.48

22.00

0.00

5.00

10.00

15.00

20.00

25.00

30.00

35.00

40.00

Dec -01 Apr-02 Jul-02 Oc t-02 Feb-03 May-03 Aug-03 Dec -03 Mar-04

Fixed Lines

Mobile


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Mobile Market in India boomed

5 million 50 million 150 million 400 million

! To continue growth

! Tariff / ARPU needs to dropfurther

! To address households withincome less than $ 60 per

month

0

100

200

300

400

500

2003 2004 2005 2006 2007 2008 2009 2010

Year

Projected

NosofSubscribers

in

million

Just like number of TVs in India rosefrom 10 million to 100 million in

90s when prices became $50 - $300


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September 04 TeNeT Group, IITM, India 5

Rural and Backward Areas fare much

worse

All India Teledensity = 7.02%

Out of 27 circles, 11 circlesaccount for mere 6% of total

telephonesRural teledensity about 1.5%

3.76Madhya Pradesh

3.16Northeast I

2.9Jammu and Kashmir

2.81Orissa

2.74Uttar Pradesh (east)

2.57Northeast II

2.53West Bengal

1.97Jharkhand

1.97Assam

1.59Bihar

1.58Chattisgarh

Teledensity (Jan04)States


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Building Bridges - Introduction


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Rural India has 700

million people

! in 600,000+ villages in India

(about 1000 people per village withper-capita income of $ 0.40 per day)

102.1

1710

3.9 1.9 1 0.3 0.3

0

20

40

60

80

100

120

60 180 260 360 520 840 1300 2240

HH Income in $ per month

Numberof

HH

inmillions

135 million rural households

! Can technologies make a significant

difference in life of such people?! Health, Education & significant

enhancement of incomes

! To Scale to 600K villages one needs

! Technology

! Sustainable Business Model

! Organisation which thinks andacts Rural


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Technology


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! BSNL (state owned incumbent operator) has fibre connectivityto most County towns

! and fibre has almost infinite bandwidth carrying capability

! 85% of villages within 15-20 Km radius of these towns! In India, typically 300 villages in 30 Km radius

! wireless systems can connect

most of these villages! wireless technologies are

continuously evolving

! costs come down and bit

rates go on increasing

300 villages

Technology: Leveraging Public Contribution


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"

$ 200 per line deployed cost

(including towers and mast)

1 million lines beingdeployed

Innovative Technologies to connect Rural India

! CorDECT Wireless in Local Loopdeveloped at IITM, India! provides a telephone line and 35/70 kbps

Internet connection in 30 Km radius# 100/200 kbps connectivity in near

future with 2.5G corDECT

! Exchange and tower in town# Works at 55 C

# Power requirement: 1 KW

# start-up costs very low

! Newer technologies emerging promising 1/2 Mbps connectivity! OFDM (like 802.16 / WiMax)

! HDR and HSDPA


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In future

! Connectivity requirement in each village! up to 1 to 2 Mbps or even 5 Mbps dedicated connection to each village can

be served by terrestrial wireless! as need goes higher, fibre or point to point wireless (microwave) may be

required

! 7 to 10 years hence

! Sparse Area Communicationswhere there is no fibre backbone

! 15% Villages!

double hop (satellite andterrestrial wireless) may servemost of these villages

! Remaining 1% of villages

! direct satellite connection

"

15 -25 Kms with

50 connections

"

2Mbps

-->

128Kbps-->


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Business Model & Applications


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Business Model:

Use Local Entrepreneurs to drive ICT! Entrepreneur-driven operator assisted telephone booths introduced in

India in 1987 on every street (within 50 m walking distance)

! Today in urban areas:! 950,000 such PCOs covering every street of smallest town

! generate 25 % of total telecom income

! 300 million people use these PCOs

! Lesson for Rural:

! To serve Rural people with incomes ofless than $ 1/day, aggregate demand

in each village & let Entrepreneurs drive it

Aid/ Grant does not scaleSuccessful Enterprises can scale to all villages


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! A Rural Service Provider

! aggregate demand into a kiosk

! owned & driven by a local entrepreneur

! $1000-1500 per Kiosk providing telephone, Internet, multimediaPC with web-camera, printer &power back-up for PC

! plus Indian language software, video conferencing software,training and maintenance

! set up by a village entrepreneur on the lines of urban PCOs

! provides telephone, stand-alone Computer and Internet services

! needs under $100 per month to break even

# 10cents per person per month

Innovative Business Models


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The Kiosk Owner

! Should have studied up to Class 10

! Need have no prior computerTraining

! Should b e ab le to communic ate tothe people in the village

Top: Suganya from Madurai Dist,TN

Left : Anishaben from Banaskanatha Dist,Guj


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Kiosk: Bouquet of Services (besides

telephony)! Learning typing

! Computer education

! Photography & movieson CD

! DTP work

!

Email/voice & video mail! E-Government

! Video conferencingproviding

! Tele-medicine

! Vet Care

! E-learning

!

E-Agriculture


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The Vet is on the Net! In Attapati village

! Priyas chicken was limping! Photo sent to Veterinary

college

! Identified as Curled toe

paralysis! Cost for process

! Reduced from $ 5 to 50Cents


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Till recently Eye Ailments that

could only be detected this way

An Eye Camp conducted in a Villagein Tamil Nadu

Now RemoteEye Care


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RemoteMonitoringof patients

healthusingwireless

A kit consisting of BP,Temperature, ECG measurementand Stethoscope and pulse countfor $ 200


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Remote Teaching: Tutorials


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Saving Crops and Agri-consultancy

Af te r

Be fo re

I n a V i ll age inMadura i , t h e Lady sFinge r ( Ok r a ) crop

w as t u rn in g w h it e

The pr ob lemw a s sen t t o t h ee x p er t s a t t h e

De p ar t m e n t o fRur a l Ex t ens ion ,

Madura iAg r i cu l t u ra l

Col l ege an dResearch Cent r ew ho d iagnosed

i t as Ye llowMosaic d i sease

Sav in g t o f ar m er - $ 3 5 0 0Co st o f I n f o r m at i on - a d ol la r


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Web- Durbar: DM talks to multiple villages

on video


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Agr i cu l tu re

A n i m a lHusbandry

Agr i cu l tu ra lProcessing

I n d u s t r y

I T -BasedServ ices

Trade &Commerce

Rural Micro-Enterprises are the Wealth Creators

! Micro-enterprises need

! Finance

! Knowledge and Training

! Buying & Selling

! Insurance

! Can Communications Enable these?

Current Rural GDP in India = $ 150 Billion

For a Population = 700 million people

GDP / Person = $ 200 per year

D r ea m o fDOUBLI NG per -cap i t a Rur a l GDP

$ 4 00 pe r pe rson pe r year

Rur a l Prosper i t y


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Financial Services with Banks

! Kiosk operators to Collect cash from villager and payonline

! Govt. payments, Telephone bills

! Kiosk operator to be an agent for# agri-crop loans

# Rural Insurance, Health and Crop

! Rural low cost ATMs at kiosks

! Works along with the PC already existing! Breakthrough pricing envisaged of $ 1000


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Ongoing Rural ICT Efforts


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Two major for-profit efforts

! ITC e-chaupal! Effort driven by a company involved in grain trading

# 4000 Internet chaupals (kiosks) in villages to aid grainprocurement, support agriculture

# Grain trading pays for ICT

! n-Logue! Partner with a Local Service Provider to connect every

village in a district using terrestrial wireless# Village kiosks cost $1000

# No subsidy, possible bank loans

# Video-conferencing is key

# Focus on education, health and livelihood

# Operation in 40 districts, 2000 villages


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Other Initiatives

! Grant / aid driven

! MS Swaminathan Center (inPondicherry focussed on agriand fishery applications)

! Tara-haat (focus on ruralenterprises)

! Akshaya (in Kerala with

Government support)! Gyaandoot* (in MP with focus

on e-governance)

! Rural E-seva* (in east

Godavari in AP with focus one-governance)

! Warana* Wired village (inMaharashtra by NIC)

* these projects are now operated by n-Logue

! For profit initiatives

! Drishtee (uses existingtelecom infrastructure)

! Application Developmentinitiatives

! Bhoomi# E-governance

program for landrecords


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Regulatory Issues


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Regulators & Policy makers should enable

! Rural Service Provider

! Enable local business to provide telephone and

Internet in villages around a county town

! Spectrum charges should be waived for ten years

! Internet Bandwidth at concessional tariff

! Drive e-governance services into villages


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To Conclude

! Internet is power

! Provides an opportunity for India to leapfrog

# Can dream of doubling per capita Rural GDP! Existing Deep Fibre and Wireless Technologies will allow

easier connectivity to hitherto unconnected villages

! Wireless Technologies will continuously evolve over the

next three to four years to enable broadband

! Innovative business model driven by local entrepreneursrequired

!

Shared Access is the quickest way to reach the rural areas

! Regulations are the key : must enable these efforts

Rural India and ICT Initiatives

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